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Country draws billions from Gulf expatriates
India experienced record-high inflows of foreign currency deposits in less than three months, with the Reserve Bank of India raising approximately $56.85 billion through the FCNR(B) deposit scheme. Of this total, $52.3 billion came from the Gulf region, with the UAE accounting for half of these funds, reflecting the region's economic significance and the large Indian expatriate communities there. These inflows, which followed the lifting of interest rate caps and the introduction of hedging facilities, helped bolster India's foreign exchange reserves and support the rupee's value. They also provided high returns for expatriates in the Gulf, typically between 6.5% and 7.5%. The response exceeded expectations, prompting the central bank to close the program early. This success is part of India's broader efforts to support its economy and strengthen its financial reserves.
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